Attachment D - Assessment Tool.pdf

Attachment D – Assessment Tool

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Assessment Tool

Objective:

As part of the orientation visit described in the audit contract and the IAF Audit Manual, the in-country Independent Auditor shall assess the grantee partner’s capacity and risks associated with the administration of IAF grant funds. As necessary, the in-country auditor will recommend a plan of action to address grantee partner’s identified weaknesses.

Procedure:

To assess grantee partners’ capacity, the in-country Auditor shall do the following:

1. Complete the assessment tool (see pages 2-4), which includes: a) a list of tasks and skills required to properly administer grant funds; b) an overall assessment; and c) a risk assessment and recommendations.

2. Conduct the assessment within 60 calendar days of receipt of a copy of the signed grant agreement.

3. Make a separate visit to each grantee partner to perform the initial assessment when group orientations (i.e., several grantee partners brought in for one meeting) are held. To coordinate activities with grantee partner, the date of the visit, which should be subsequent to the general orientation, shall be communicated to the IAF Country team: the Foundation Representative, LLAS and Data Verifier.

4. Visit for a second time grantee partners with high-risk and deficiencies in key administrative areas to assist them with improving their systems. This visit will take place within six months after the first assessment visit and last from one to three days, depending on the complexity and breadth of the topics to be covered. The IAF auditor and Foundation representative will coordinate the details of additional grantee partner training, determining who will perform the training, scope of work, timing and participants.

5. Confirm that Foundation Representatives and/or LLASes get feedback from the grantee partner on the training provided. Comments will be entered into the Grant Actionable Items tracking sheet.

6. Work together with Foundation Representative and the IAF Auditor to ensure additional assistance is provided to grantee partners on an as-needed basis.

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Assessment Tool

(In-Country Auditor: Please complete the following form and submit to IAF with the orientation visit report)

Name of Grantee Partner: ____________________________

Project Number: ____________________________

A. Tasks and Skills (Check “Yes” or “No”)

Yes No

1. Grantee partner has an active bank account _____ _____ (savings and/or checking) for the exclusive use of project funds, or is in the process of opening one.

2. Grantee partner has dual signature requirements on the project _____ _____ bank account(s).

3. Grantee partner has an active bank account for the exclusive use of _____ _____ loan funds, if applicable.

4. Grantee partner uses a vehicle log book for project _____ _____ vehicles.

5. Grantee partner has loan funds regulations in place, if applicable, _____ _____ or has a timetable for presenting them to IAF.

6. Grantee partner prepares monthly bank reconciliations. _____ _____

7. Grantee partner has an adequate accounting system for tracking project expenditures, including loan funds, with budget control capabilities. _____ _____

8. Grantee partner personnel have prior experience administering _____ _____ grant funds.

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9. Grantee partner applies local personnel and payroll requirements including:

a) Personnel folders for project personnel _____ _____

b) Tax withholding requirements _____ _____

c) Local minimum wages _____ _____

d) Year-end bonus and bonifications required by law. _____ _____

e) Social security and other benefits _____ _____

10. Grantee partner understands the auditor’s requirements for substantiating project contributions and expenditures including:

a. Counterpart _____ _____

b. Travel (Advance policy) _____ _____

c. Procurement _____ _____

d. Honoraria _____ _____

e. Salaries _____ _____

f. Training (Including the use of attendance lists) _____ _____

11. Grantee partner has an adequate system for filing project documents. _____ _____

12. Grantee partner has obtained or is in the process of obtaining _____ _____ tax exempt status for project purchases, where applicable.

13. Grantee partner has access to board meeting minutes which will be _____ _____ made available to the auditor.

14. Grantee receives an annual institutional audit. _____ _____

B. Please rate grantee partner’s overall capacity and system of internal control using 1 (if grantee partner answers “YES” to all 13 questions above), 2 (if grantee partner answers “YES” from 5 to 12 of the 13 questions) or 3 (if grantee partner answers “YES” to less than

5 questions above):

Overall Capacity: --------------------------------------------------------------------

1 2 3

C. Risks and recommendations: Based on the above data, please select ONE of the options below and provide details on space provided:

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1) Grantee partner does not need any training related to grant funds administration:

2) Grantee partner has one to four administrative weaknesses and needs improvement as follows:

a._________________________________________________________________________ b._________________________________________________________________________ c._________________________________________________________________________ d._________________________________________________________________________

3) Grantee partner has five or more administrative weaknesses and needs improvement as follows:

a.________________________________________________________________________ b.________________________________________________________________________ c._________________________________________________________________________ d._________________________________________________________________________ e._________________________________________________________________________

Additional Comments:

Independent Auditor Signature: ____________________________ Date: _______________